Energy Services

Cardinal Gas Services | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Total | Utica Shale

Total, EVEP Sell Interest in Cardinal Midstream to S Koreans for $612M
September 24, 2014September 24, 2014

In August MDN told you that a pair of Korean companies were sniffing around Cardinal Midstream Services–looking to buy up to a 34% stake in the company (see Cardinal Gas Courts S Koreans to Invest in Utica JV). Cardinal is a midstream operator (pipelines and processing plants) in the Utica Shale. The Koreans are sniffing no more. Yesterday, one of the investor/owners of Cardinal, French oil giant Total, announced they’re selling their 25% stake in the company to two Korean companies…
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Allegheny County | Economic Impact | Energy Services | Ethane | Industrywide Issues | NGLs | Odebrecht | Pennsylvania | Processing Plants | West Virginia | Wood County

A Present for Attendees of Shale Gas Insight – Peebles Column
September 24, 2014September 24, 2014

Just in time for the attendees of Shale Insight in Pittsburgh to read, a guest commentary was published in today’s edition of the Pittsburgh Post-Gazette by David Peebles, the man helping to build a $3 billion ethane cracker plant in Parkersburg, WV. David waxes eloquent on shale, ethane and energy security…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Sunoco Logistics | Washington County

Mariner East Pipeline Drilling Spills Mud in Local Creek
September 23, 2014September 23, 2014

Last Thursday, Precision Pipeline of Waynesburg, Pa was drilling under the Little Mingo Creek behind the Mingo Creek Church on behalf of Sunoco Logistics when the drill bit hit something really solid. It stopped the bit and led to drilling mud, often called bentonite, to leak into the the Little Mingo Creek causing a gray “sludge” to travel down the creek in Nottingham and Union townships (Washington County), PA. Bentonite is non-toxic and used in products from shampoo to deodorant and toothpaste. It’s also used to lubricate the drill bit and carry drill cuttings out of the ground. While non-toxic, a whole lot of bentonite in the water can, of course, suffocate fish and cause problems for wildlife that happen to drink it…
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American Energy Partners | EMG | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Processing Plants | Statewide OH | Summit Midstream

MarkWest Signs Up McClendon’s New Company as Utica Customer
September 23, 2014September 23, 2014

Yesterday MarkWest Energy and their partners The Energy & Minerals Group and Ohio Gathering Company announced they’ve signed up Aubrey McClendon’s new company American Energy Partners (AEP) as a major new customer in the Utica Shale. Ohio Gathering will hook up their pipelines to AEP’s drilled Utica wells and pump natural gas and liquids, and MarkWest will process it all. The natural gas part will be processed in MarkWest’s Cadiz complex in Harrison County, OH and its Seneca complex in Noble County, OH. AEP’s NGLs will be fractionated (separated) at MarkWest’s Hopedale complex…
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American Water Management | Earthquakes | Energy Services | Industrywide Issues | Ohio | Regulation | Trumbull County

ODNR Clears Trumbull Co. Injection Well in August Quake
September 22, 2014September 22, 2014

An earthquake nobody felt on August 31 caused the Ohio Dept. of Natural Resources (ODNR) to shut two frack wastewater injection wells in Weathersfield (Trumbull County), OH operated by American Water Management Services (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). ODNR has been hard at work trying to determine whether or not either of the wells may have caused the low-level (nobody could feel) quake. Last Thursday they gave the shallower of the two wells, the AWMS #1, the all-clear sign. American Water can restart that well at any time (and likely already has). However, they’re not quite ready to restart the deeper AWMS #2…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | UGI Energy Services

NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline
September 19, 2014September 19, 2014

Even though there has been small but shrill opposition to the recently announced PennEast Pipeline, likening it to violating a virgin (see Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise), the project continues to gain momentum. The $1 billion pipeline project that would flow cheap, abundant and clean-burning Marcellus Shale gas from northeast Pennsylvania all the way to Trenton, New Jersey was announced a month ago (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The project is a joint venture between four companies, including energy utility giant UGI. The new news is that the quartet of partners in the PennEast Pipeline project have just become a quintet–adding PSEG (Public Service Electric & Gas) Power, New Jersey’s largest utility…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Kinder Morgan Sweet Talks Maine to Support Mass. Pipeline
September 19, 2014September 19, 2014

Here’s an interesting move by Kinder Morgan. On Wednesday, KM issued a press release (below) that they’ve filed an “historic” proposal with the Maine Public Utilities Commission offering the State of Maine a long-term contract for natural gas pipeline capacity with the goal of lowering overall energy costs for Maine consumers. This is the same pipeline, an expansion of the mightly Tennessee Gas Pipeline (TGP), that KM plans to build across the state of Massachusetts. According to the KM proposal, Maine can purchase up to 200 million cubic feet of natural gas per day from the new pipeline, when/if built, and virtually solve the problem of high electric and gas rates in Maine forevermore. KM already has 63% of the expanded TGP pipeline capacity spoken for (see Kinder Signs up New Customers for MA Pipeline, 63% of Capacity). Looks like they’re trying to fill the rest of the dance card by getting Maine (and a few others) on board. KM’s announcement on Wednesday also included a notice that they’ve done a pre-filing with the Federal Energy Regulatory Commission on the Pennsylvania portion of the Northeast Energy Direct project, as the pipeline expansion project is called…
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Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Wastewater

GreenHunter Gets Green Light for 4 New OH Injection Wells
September 18, 2014September 18, 2014

This one won’t please the anti-drilling nutters in Ohio. GreenHunter Resources (division of Magnum Hunter) announced on Tuesday they have received permits and have concluded successful testing to bring four new Utica/Marcellus wastewater injection wells online in Meigs County, OH. With the addition of these four new injection wells, GreenHunter will be operating a total of 13 such wells. Each of the new wells can handle 3,000-5,000 barrels of brine/wastewater per day. According to GreenHunter, most of that new capacity coming online is already spoken for. They already have major drillers locked up as customers for the new capacity because the need is so great. The company also says the wells are ready to be begin accepting wastewater that’s barged down the Ohio River (hint hint U.S. Coast Guard)…
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CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble Energy | Pipelines

CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M
September 18, 2014September 18, 2014

Three weeks ago MDN brought you the news that CONSOL Energy together with Noble Energy (two drillers who joint venture together on some Marcellus drilling) have joined forces to form a midstream (pipeline) company called CONE Midstream to hook up pipelines to their Marcellus wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). The new pipeline company will take the corporate form of a master limited partnership, or MLP. Yesterday Noble announced an initial public offering (IPO) for “units” in the new company (think shares of stock). The companies hope to sell 20.1 million units and raise $422.6 million for the fledgling midstream company…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy New England Pipeline Gets a Name & a Partner
September 17, 2014September 17, 2014

Yikes. Pipelines planned for the northeast continue to spring up. They’re needed, that’s to be sure. And they bring with them billions of investment (and loads of jobs). All good things. Ultimately it will mean lower utility costs for gas and electric, particularly in New England–if these companies can get them built. One of the most recent entrants is Spectra Energy with their announcement in July to expand the Algonquin and Maritimes pipeline systems adding an additional 1 billion cubic feet of natural gas per day by 2017, much of it slated for New England’s electric generating plants (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project now has a name and a new partner. It’s being called the Access Northeast project and Spectra has picked up a partner in Northeast Utilities to help shoulder the expense, pegged at $3 billion to build it…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | M&A

Morgan Stanley Buys Partnership in Eureka Hunter for $65M
September 17, 2014September 17, 2014

Yesterday Magnum Hunter, a Marcellus/Utica driller with a number of subsidiaries, including midstream company Eureka Hunter, announced that Morgan Stanley is becoming a partner in Eureka Hunter. Price tag for becoming a partner? $65 million. According to Magnum Hunter and Morgan Stanley, Eureka Hunter is now worth $1 billion. The deal itself is complicated and includes multiple subsidiaries and names you’ve likely never heard of (like Ridgeline Midstream and ArcLight Capital Partners). We just told you the news in a nutshell. Below is the press release from Magnum Hunter announcing that news–a press release obviously written by lawyers, rendering it virtually unreadable for the rest of us…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | UGI Energy Services | Williams

Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise
September 17, 2014September 17, 2014

Whenever a major new interstate pipeline is proposed, especially in the northeast where more such pipelines are desperately needed, anti-drillers jump up and begin protesting immediately. It’s like a knee-jerk reaction–a Pavlov’s dog experiment gone awry. They don’t even know why they oppose it–they just do. Can’t help themselves. And so earlier this week we have two anti-pipeline meetings–one in New Jersey against the PennEast Pipeline project, the other in Pennsylvania against the Atlantic Sunrise Pipeline project. Whenever these nuts gather their conversation turns to the shrill and irrational. Try this one on. The proposed PennEast Pipeline will “cut a wide ‘virgin’ path along the entire western edge of the county” in Hunterdon County, NJ, according to Sierra Clubers at an anti-pipeline meeting on Monday. Kind of conjures up rape, does it not? That’s just what they intend with their incendiary language…
Read More “Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise”
Anti-Drilling/Fossil Fuel | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation

Athens, OH Anti-Frackers Demand Army Corps Count Each Form Letter
September 16, 2014September 16, 2014

The silly (and vacuous) “protesters” who don’t want GreenHunter to build a barge facility on the Ohio River (where there are what, dozens, hundreds of such facilities?) think that if they can convince enough like-minded (we use the term “minded” loosely) anti-fossil fuelers to sign their John Hancock on form letters that the U.S. Army Corps of Engineers should count each form letter individually instead of lumping them together. So instead of a “massive” 4,000 form letters received, the Corps records getting “fewer than 1,000” so-called protest letters against the wastewater barge facility. Appearances and raw numbers are all that matter to the carbon energy-allergic members of the Athens County Fracking Action Network (ACFAN). What’s the answer for this small group of people whose lives have no meaning apart from being against something? According to ACFAN and their odious backers at Food & Water Watch–sign more form letters to demand the Corps count their previous form letters!…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Regulation | Tennessee Gas Pipeline

MA Town Health Board Claims “Unlimited Power” to Stop TGP
September 15, 2014September 15, 2014

Who knew the U.S. Constitution had a clause in it that grants the Deerfield, Massachusetts town health board “unlimited power” to do what they want to do. That’s what Cristobal Bonifaz, a lawyer from Conway, MA, is claiming. Even though the Federal Energy Regulatory Commission, according to federal law, is the sole agency charged with granting or withholding permission on interstate pipelines, Bonifaz says the Deerfield health board has “unlimited power” to do what they want, and he’s volunteering to be their attorney in attempting to stop the expansion of the Tennessee Gas Pipeline through the township. How?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Supply Chain

ETP Selects Manufacturer for 600 Miles of Pipeline for ET Rover
September 15, 2014September 15, 2014

Energy Transfer Partners (ETP) in June announced their intention to build a 600-mile long pipeline called ET Rover that will shuttle some 3.25 billion cubic feet per day of Marcellus and Utica Shale gas to markets in the Midwest and Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). ETP hasn’t wasted any time. They already have a number of large customers lined up. The company has also lined up the manufacturer that will produce the 600 miles of pipeline–the largest order for this company in it’s 35-year history…
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Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline

Reversing the Fortunes for “Wrong Way” REX Pipeline
September 15, 2014September 15, 2014

What happens when you build a major interstate natural gas pipeline–and you’ve guessed wrong about the market. That happened to Tallgrass Energy and their Rockies Express Pipeline (REX), which runs from Colorado and Wyoming in the West to Ohio in the East. The REX Pipeline was completed in 2009, just in time for the shale revolution to begin in the Marcellus and now in the Utica. What to do when you’re pumping gas into a saturated market? At last week’s LDC Gas Forum in Chicago, Tallgrass vice president Doug Walker said you change things up…
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